HR Tips to Avoid Legal Hassles with Immigration and Customs Enforcement

This includes strategies on how to respond to an ICE audit.

 

Employers have been having problems with the U.S. Department of Homeland Security’s Immigration and Customs Enforcement (ICE).

ICE served 3,004 notices of inspection (NOI) in fiscal 2012. Alleged irregularities uncovered NOIs resulted in more than $12 million in fines and 520 criminal arrests – which included 240 human resources employees, business owners and managers.

Errors associated with Employment Eligibility Verification forms (Form I-9) can lead to civil penalties ranging from $110 to $1,100 per violation.

If an employer knowingly employing unauthorized workers can range from $375 to $3,200 for first-time violations. The penalty criteria: Business size, whether or not there was good employer faith, the violations’ severity, and whether there were previous offenses.

If you get an NOI, you have 72 hours to respond in-full.

NOIs mean ICE wants to see:

• Your I-9 forms for both current and recently terminated employees
• Payroll records
• List of current employees
• Information regarding the company’s owners

So perform your due diligence to avoid problems.

I-9 precautions:

1. If you think there’s any possibility of legal issues, chances are you will – see a good immigration attorney.

2. Use the approved I-9 form – As of May 7, 2013, only the March 8, 2013 version has been acceptable.

3. Make certain that new employees complete Section 1 before they start work. Complete Section 2 and the Certification by the end of the third business day.

4. Make sure you’re not trapped into a discrimination charge by making new employees give you more information than are normally required.

5. Don’t accept expired documents from an employee.

6. Before they expire, re-check any expiring work authorization documents – don’t allow any workers to continue in your employ if any are expired.

7. Don’t re-verify U.S. passports, Permanent Resident Cards or List B Identity documents.

8. Don’t keep I-9 forms in the employees’ files. For current employees, keep I-9 forms in a separate file. Keep a separate file for terminated workers.

9. On a regular basis, be sure to conduct audits on I-9 forms. Get your attorney involved on this. Fix any correctable errors, and initial and date adjacent to the corrections. Use the words, “Per Self Audit.”

Responding to an NOI

Not only do you have to be diligent in organizing your I-9s, you have to be very diligent in your response to an NOI.

Your response sets the stage for communication, and possible negotiations and a settlement with ICE.

If an ICE agent shows up at your office with an NOI, here are four strategies:

1. As in any business potential issue, prepare by developing a response plan. Meet with key employees who should be apprised of the significance of such a visit from ICE.

Again, you should have already contacted an immigration attorney so you can flawlessly execute your plan.

Here’s an example why only people highly skilled in communication should be receptionists:

When visiting your company, an ICE representative will likely engage your receptionist first. Assuming you sanction your receptionist to accept and receive important documents like an NOI, require the person to immediately notify you and/or your second-in-command and your human resources manager.

The attorney should advise you and take the lead. Otherwise, only a designated manager should have further contact with ICE. Again, you’ll be required by law to respond within three days – 72 hours.

2. Don’t be fooled by the pleasant demeanor of the ICE officer. Don’t be lulled into thinking the person is on your side. Don’t let the ICE agent trick you into saying something that could be used against you later. Assume the agent is there to build a case.

“U.S. Immigration and Customs Enforcement is the principal investigative arm of the U.S. Department of Homeland Security (DHS) and the second largest investigative agency in the federal government…ICE now has more than 20,000 employees in offices in all 50 states…” according to ICE’s Web site.

Be civil, honest, brief and thoughtful. That also means being careful what you say – like you would in a courtroom – don’t say more than is needed.

Don’t rush the process even if you’re confident. Take your full allotted time to respond. Your immigration attorney should audit your paperwork, and make any necessary and feasible modifications.

Additionally, your lawyer should help you respond by interfacing with ICE – for the audit and any extenuating circumstances.

Ideally, you have been thorough in your planning. However, if you’re unsure about anything mentioned in the NOI, it’s businesslike within the three-day period to ask for two things: Elucidation and confirmation of your request and ICE’s answer. (Again, your attorney should be involved.)

3. Paper trail…paper trail…and paper trail. Accuracy is vital and make certain you make a list of the information you give ICE.

The ICE audit won’t be conducted at your office. It will be on ICE’s turf – the government office. Like checks, consider giving the agent a carbon copy of your I-9 forms with supporting records. Then, ask for a receipt of your list and documentation.

Finally, keep careful notes of any verbal communication, and document all details in an e-mail or letter to ICE.

From the Coach’s Corner, more HR tips:

• Government Warns Business in Ruling Against Costco on Social Media Policy
• How to avoid EEOC Discrimination Suits
• Tips for Marketing Your HR-Policy Changes to Employees
• Management: 7 Tips for Success if You Must Lay off Employees 

“Diligence is the mother of good luck.”
-Benjamin Franklin

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

Liars and Cheats – Clues You’re Dealing with a ‘Pinocchio’ in Business

There are ways you can spot a liar in business, according to an academic study.

 

-June 8, 2013- 

Italian writer Carlo Collodi probably had no idea what he was starting in 1883 when he wrote the children’s novel, The Adventures of Pinocchio.

It was the story about a woodcarver who created a wooden puppet that wanted to become a real boy. Pinocchio’s short nose would grow longer whenever he told a lie.

Since then, Pinocchio has become synonymous with a person who is lying. Some people are easy to read, but accomplished liars are difficult to spot.

If you don’t detect a liar or cheater soon enough – whether it’s an associate in deal-making, a partner or an employee – you could lose a lot of money or another commodity – time. On second thought, these tips work employees when dealing with some bosses.

Helpful clues are contained in a scholarly report, “How to Spot a Liar.” It was written by the University of Wisconsin’s Lyn M. Van Swol and Michael T. Braun, and Harvard Business School’s Deepak Malhotra.

The researchers recruited 104 participants to play the ultimatum game, a popular tool among experimental economists.

The researchers’ clues about lying from the game aren’t foolproof, but are certainly worth considering. Their study offers clues about dealing with mendacious people, but people guilty of fraud by omission. The scholars say cheats do it “by changing the subject or by saying as little as possible.”

Pinocchio effect

“Just like Pinocchio’s nose, the number of words grew along with the lie,” adds the researcher. “Evidence for the Pinocchio Effect” fills a key gap in the field of deception research, says Dr. Van Swol, the study’s lead author.

“Most people admit to having lied in negotiations, and everyone believes they’ve been lied to in these contexts,” says Dr. Malhotra. “We may be able to improve the situation if we can equip people to detect and deter the unethical behavior of others.”

The researchers looked for what they call strategic and nonstrategic language cues.

“A strategic cue is a conscious strategy to reduce the likelihood of the deception being detected,” Dr. Van Swol explains, “whereas a nonstrategic cue is an emotional response, and people aren’t usually aware that they’re doing it.”

Excerpted tips from a Harvard Business School article:

Key findings in strategic clues –

• Bald-faced liars tended to use many more words during the ultimatum game than did truth tellers, presumably in an attempt to win over suspicious receivers. Dr. Van Swol dubbed this “the Pinocchio effect.” “Just like Pinocchio’s nose, the number of words grew along with the lie,” she says.
• Allocators who engaged in deception by omission, on the other hand, used fewer words and shorter sentences than truth tellers.

Nonstrategic cues –  

• On average, liars used more swear words than did truth tellers – especially in cases where the recipients voiced suspicion about the true amount of the endowment. “We think this may be due to the fact that it takes a lot of cognitive energy to lie,” says Dr. Van Swol. “Using so much of your brain to lie may make it hard to monitor yourself in other areas.”
• Liars used far more third-person pronouns than truth tellers or omitters. “This is a way of distancing themselves from and avoiding ownership of the lie,” Dr. Van Swol explains.
• Liars spoke in more complex sentences than either omitters or truth tellers.

There’s a strange irony in all of this:

“People detect lies better over the computer than they do face-to-face,” says Dr. Van Swol.

A final caution

“This is early stage research,” says Dr. Malhotra. “As with any such work, it would be a mistake to take the findings as gospel and apply them too strictly. Rather, the factors we find to be associated with lies and deception are perhaps most useful as warning signs that should simply prompt greater vigilance and further investigation regarding the veracity of the people with whom we are dealing.”

Read more about the report here.

From the Coach’s Corner, related tips:

• The 22 Dos and Don’ts for Successful Negotiations
• Beware: Small Businesses Lose $2.9 trillion to Worker Fraud
• Embezzlement – 21 Tips to Protect Your Nonprofit or Company Assets
• Valuable Secrets for Profitable Deal-Making with Clients

“You have undertaken to cheat me. I won’t sue you, for the law is too slow. I’ll ruin you.”
-Cornelius Vanderbilt

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

Strategic Challenge: What’s a CFO to Do about Sustainable Growth?

Sustainable growth ranks as global companies’ No. 1 strategic planning challenge – in which chief financial officers will be playing a major role, says a study. 

 

June 7, 2013 

Global executives say sustainable growth is their most salient planning challenge and their chief financial officers will help lead the effort. But how CFOs will respond remains to be seen. Those were the main conclusions from the 2013 McKinsey Global Survey, which included responses from senior executives and CFOs.

“Regardless of which sources of growth their companies pursue, the results indicate that, in the coming years, CFOs will need to up their game in a wide range of growth-related activities,” wrote the authors in McKinsey & Company’s New York office.

Aside from the researchers’ point about CFO capabilities, the study raised these salient questions:

1. What are CFO perceptions about growth, and how will they achieve it?
2. Will growth come through mergers and acquisitions or organic growth?

Report findings:

• 86 percent of CFOs admit difficulty in identifying new opportunities – organic and otherwise
• 77 percent of CFOs regard another dilemma is long-term growth vis-à-vis pressures from short-term investors
• 72 percent of executives agree it’s difficult to determine the best growth strategy – whether its organic or inorganic
• 70 percent of executives concur it’s challenge to identify and implement long-term growth strategies while keeping short-term investors happy
• For the next five years, 45 percent of CFOs and 36 percent of executives specify organic growth as the most likely in importance
• “CFOs are also less likely to see shifting of resources within the portfolio as the most important driver.”

There wasn’t a consensus on M&A or organic growth. In reading between the lines, it does appear that there will be a healthy debate on the two growth options.

Satisfaction with effectiveness

The researchers say the executives expect to be content with their organizations’ efficacy in handling their growth drivers and matters relating to “portfolio management, including capital allocation, capital-expenditure approval, and profit-and-loss management…”

But there is an area of concern:

“Yet nearly half of non-CFO executives report less satisfaction with their companies’ effectiveness at processes that drive M&A, as well as expansion into new markets and organic growth (such as new-product development and expansion to adjacent products and services),” wrote the researchers. “Not surprisingly, these are the same areas where non-CFO respondents think CFOs could more effectively spend their time.”

The McKinsey researchers: Ankur Agrawal, an associate principal; Kaustubh Joshi, a consultant; and Ishaan Seth, a partner.

You can see the report here. (You’ll probably have to register to view this and other McKinsey reports.)

From the Coach’s Corner, related information:

• Strategic Planning – Profit Lessons from Companies That Focus Long Term
• How to Avoid Failure in Risk Management and Strategic Planning 
• Are You up-to-date on Opportunities in Emerging Markets? Most Managers Aren’t 
• Setting Goals: Alleviate Uncertainty with 8 Best Practices 

“There are no great limits to growth because there are no limits of human intelligence, imagination, and wonder.”

- Ronald Reagan

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

Why Health-Insurance Rates Increasing and Policyholders Losing Coverage in WA

Two promises of ObamaCare are proving to be false in Washington state, says leading think tank. 

 

June 6, 2013 

Hundreds of thousands of Washington state residents – individual policyholders and small group insurance members – are learning two promises of ObamaCare are false. They won’t be able to keep the same coverage they had before passage of the controversial Affordable Care Act (ACA), and their rates are increasing.

“It is estimated that potentially 650,000 Washingtonians now covered in the individual and small group insurance markets will be forced to change their plans,” says Dr. Roger Stark, the Washington Policy Center (WPC) health care analyst. “These consumers will receive a notice from their insurance company that the law now forbids them from keeping their existing plans.

“They will be presented with a menu of allowable insurance plan options,” he adds. “Their deductibles and benefits will change, most likely in the upward direction. Unfortunately, people’s choices will be sharply limited, with less innovation and choices.”

Depending on the provisos in their ACA plan, the WPC analyst says their out-of-pocket costs will range from zero to a 70 percent increase.

Conflicting reports – confusion

He says conflicting news-media reports on comparing health insurance plans have led to confusion among patients. You must read carefully but you’ll find the media comparisons are based on erroneous assumptions – apples to oranges examples.

Previously, healthcare insurance was regulated by Washington state’s insurance commissioner. Coverage and premium rates were created by the insurance companies, and subject to state approval. Once approved, any premium increase could be monitored. They were either approved or denied.

But now, it’s a different ballgame. The government, including the Internal Revenue Service, is assuming control.

But the ObamaCare shell game is not confusing all his supporters – even a union now demands “repeal or complete reform” of ObamaCare. 

Insurance companies are required to provide qualified health plans subject to approval by the state insurance commissioner and the U.S. Department of Health and Human Services.

All of this is mired in thousands of pages in new regulations.

So, if you’re enrolled in an individual plan, you’ll have to learn whether you get to keep your coverage. The WPC analyst predicts you’ll pay a 5 to 10 percent increase.

However, if you have to switch plans, you’ll have to compare benefits between the old and new coverage.

If you want more benefits as some required by ObamaCare, you’ll pay a premium increase.

More exorbitant costs

ObamaCare requires you buy IRS-monitored health insurance for $4,500 or pay a $700 tax.

Insurance companies will be required to sell coverage to any person – no matter what the pre-existing condition is. That has unfortunate consequences for the majority.

“Many young and healthy people will wait until they are sick or injured to buy insurance,” says Dr. Stark. “People who are responsible and purchase insurance before they become sick will find their premiums skyrocketing, as they are forced to pay the health costs of those who wait to buy coverage.”

WPC (www.washingtonpolicy.org) is an authoritative think tank based in Seattle with satellite offices in the Olympia and Spokane.

From the Coach’s Corner, related articles:

• Taxes – What Should Washington State Do about Medicaid?
• Why Uncertainty Continues for U.S. Business and Workers, Alike
• FDA Inefficiency Costs ‘Thousands of Lives and Billions of Dollars’ in Healthcare – Book
• Obama’s Broken Promise for Transparent Government – Study

“You know we’re going to control the insurance companies.”

-Joe Biden

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

4 Recommendations to Avoid Spending Too Much on IT

To take advantage of big cost savings in information technology, a study says businesses need to change their buying habits. Here’s how.

 

June 5, 2013

Despite an unprecedented trend to control information-technology costs, the majority of companies fail to achieve maximum savings, according to a multi-nation Forrester Consulting study.

“After surveying 304 IT decision-makers, Forrester found that even though IT budgets are under constant scrutiny, businesses have defaulted to vendor influence which has blinded them to the rewards of extending hardware lifecycles and third-party maintenance solutions,” according to the 2013 report.

Seventy-six percent of respondents want to minimize expenditures, but they don’t know they’re overpaying in the two ways.

Little wonder why the top IT decision-maker for many companies is not the chief information officer – the chief financial officer is. Many CIOs are too obtuse in finance.

Instead, they should become budget savvy in our tepid economy or in case the economy worsens. In essence, CIOs should learn how to get more respect in the C-Suite. Then, companies would find it easier to control costs.

The Forrester study is entitled, “Challenging The Status Quo On Maintenance Contracts And Refresh Cycles To Lower Costs.”

More key findings:

• Up to 79 percent of organizations refresh their wired networking infrastructure every one to five years guided by industry averages that originate from the vendors.
• Vendors set the end of life agenda resulting in the sometimes unnecessary and expensive replacement of IT equipment – that still carries market value and has 20 plus years mean time between failures.
• End of life equipment is prematurely retired. Eighty-five percent of respondents admitted that they would have kept their legacy networking equipment if the vendor continued to support it.
• Original equipment manufacturer maintenance services have little return on investment. More than 80 percent of organizations buy maintenance contracts from their equipment manufacturer even though they see little value in what they are purchasing and express discontent over misrepresented cost savings, new fees, and inflexible pricing models.
• Third-party maintenance options are widely unknown. Only 21 percent report that they have leveraged competitor third-party bids when negotiating service and maintenance contracts, while 80 percent claim they would leverage third-party maintenance if they found it to be more affordable than their current contract.

Report’s recommendations:

1. Keep what’s working within an existing infrastructure to avoid premature and unnecessary upgrades.
2. Don’t pay for software updates if there are none, or if they are available for free. Organizations should carefully scrutinize ongoing maintenance contracts in order to find valuable operational expenditure savings.
3. Put maintenance contracts out for competitive bid, not just to different resellers, but also include third-party options.
4. Put metrics in place to reward value, quality, and longevity, not just resiliency.

The survey’s methodology: Interviews were conducted with IT decision-makers in Australia, France, Germany, India, Japan, Singapore, the United Kingdom, and the United States.

Respondents included decision-makers in executive positions, finance, information technology, and procurement.

Hence, an obvious conclusion:

“Every CIO should make it a priority to read this report,” says Mike Sheldon, president and CEO of Network Hardware Resale (www.networkhardware.com), which sponsored the study.

“Businesses of all sizes need to know that there can be incredible value and cost savings with a reliable third-party maintenance service provider – helping to ease worries about tightening IT budgets without sacrificing quality,” he adds.

Amen. Review your overall business situation, how vendors are selected, upgrading solutions, end of life, and maintenance.

Click to download the report.

From the Coach’s Corner, editor’s picks for reading:

• Two Studies Indicate Need for IT Pros to Get Businesslike
• Risk Management – Picking the Best Cloud Storage Provider
• Do BYOD Headaches Outweigh Benefits? Yes

“Beware of little expenses. A small leak will sink a great ship.”
-Benjamin Franklin

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

Lessons in Online Reputation Management from State Farm

For business success, you must safeguard your Internet reputation. Tell that to America’s biggest casualty-insurance company, State Farm Insurance, after getting hammered in news reports and social media.

 

June 4, 2013

The quality of your 21st-century digital footprint is important for long-term business sustainability. That means maintaining a positive online reputation.

It requires an understanding of the Internet eco-system and the use of best-management practices. But that’s not the appearance from a mega insurance-company’s performance.

State Farm is the nation’s largest in auto and homeowner insurance. But that could change if it doesn’t improve its reputation on the Internet. (Disclosure: I was a State Farm agent for a year in the 1970s and a policyholder.)

In terms of online reputation management (ORM), State Farm is under fire in the wake of several Web news articles and numerous sharing on Twitter.

Google mentions

If you go to Google News, enter the keywords, “State Farm claims” where the search engine indicates “About 2,550,000 results.”

Among them, you’ll see multiple recent negative references:

In April, a jury found State Farm defrauded a federal entity – the National Flood Insurance Program – and made a false report in the claim of policyholders in the aftermath of Hurricane Katrina (e.g. State Farm Appeals Katrina Fraud Ruling in Mississippi).

State Farm received more bad publicity after it lost another case for refusing to renew hundreds of property policies (State Farm fined $150,000 in Delaware, suspends coastal non-renewals).

Another news report indicates State Farm was sued in U.S. District Court for alleged age discrimination by a 23-year claims representative who “…was promoted numerous times, received positive evaluations and awards for exemplary customer service (Braxton County man sues State Farm for wrongful termination).

Negative tweets

Representative complaints on Twitter:

• Betsy Muse ‏@BetsyMuse 21h @StateFarmclaims process so bad we’re ready to end our 20 year relationship with them – home, auto and life… 

• William Bill Hurst ‏@whurst1 30 Mar “@dolmanlaw:State Farm Reports Profits of $3.2 Billion While Lowballing Claims in Florida http://www.dolmanlaw.com/state-farm-reports-profits-3-2-billion-lowballing-claims-florida/ … via @dolmanlaw #statefarm”

The problem with the Internet is that such negatives seemingly last forever because they’re difficult to erase.

Without getting into the question of State Farm’s ethics and performance, it is surprising that the company doesn’t seem to know how to eliminate the bad references on Google. Fortunately for State Farm, 90 percent or so of surfers don’t look past the first 10 listings.

There hasn’t been any noticeable evidence of State Farm using best practices to optimize its brand and manage its Web reputation. How to do it?

Here’s one clue: Bombard the net with positive, authoritative information in a variety of ways to suppress the bad. You see, the key to Internet dominance is to think integration.

Generally, to combat bad publicity, here are typical ORM vehicles:

• Register all possible similar combinations of domain suffixes
• Set up similar social media accounts, such as Facebook, LinkedIn, Twitter with hashtags
• Use keyword triggers to map conversation trends
• Persuade numerous associates or centers of influence to post references about you
• Publish strategic press releases
• Submit letters to the editor on media sites
• Create YouTube videos

All such tools either will or should have authoritative page ranks to supplant the negative references.

Unless it’s a highly unusual situation, you’d be better off ignoring the bad stuff. It doesn’t make sense trying to rebut it because you’ll risk giving it more online prominence with a higher search rank.

In many cases, let it go, unless you have a rash of bad reviews. In which case, you also better conduct an operations audit to correct all the problems.

If you’re successful and have a budget to monitor your online reputation, Website Magazine listed 10 reputation-monitoring tools. Beware, though, many are pricey.

From the Coach’s Corner, more tips:

• Public Relations Expert Provides Crisis Management Tips
• Overview: Marketing Plan Essentials For Best Results
• Do You Want to Prevail on Google? Watch the Cheesy Stuff
• 5 Factors to Get Peak Google Results for Your Web Site – Study
• Google Insights – 23 Key Questions about Your Web Site 

“That’s what Rocky is all about: pride, reputation, and not being another bum in the neighborhood.”

- Sylvester Stallone

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

How Retailers Can Improve Operations for Profits

 

Many retailers could turn their operations into higher profits, if they do a better job of utilizing their customers’ data according to a study.

That includes adequately learning insights by better engaging their employees who deal with customers on a regular basis.

“Leading retailers encourage measurement of the right data, invest in the skills to gain insights from that data, and use those insights effectively to frame future actions,” says Joel Alden, an A.T. Kearney partner. He’s also co-author of the 2013 study, “Achieving Excellence in Retail Operations.”

Key findings:

• Leading retailers are much better than others at collecting data, measuring activities, acting on their insights, and measuring again to see the results.
• Retailers that most actively engaged their employees and customers were the most successful.
• Retailers often weren’t managing the multichannel environment. In this new environment, customers will often return products to a store that they ordered online, or ask a store employee to order an out of stock item through another channel. When employees are not measured on the success of non-store channels, they have little incentive to encourage the growth of those channels.
• Retail field managers are spending too much time on administration and not enough time in the field.

Engaging employees

Interestingly, few retailers take full advantage of employee insights – employees interact with customers all day long, gaining valuable insights into customer needs.

“The problem today is a lack of formal requirements or processes to gather these employee insights. Leading retailers create formal pipelines that capture and use these insights,” says Adam Pressman, A.T. Kearney principal and a study co-author.

“With all of the moving parts, retail leaders dedicate resources to effectively drive and manage change,” says Dean Hillier, A.T. Kearney partner and study co-author.

“This includes focused and measured pilot efforts, tailored communications and communication channels based on messages and employee groups, and a focus on continuous improvement, not just one-and-done mandates,” Mr. Hillier adds.

Social network data

The authors also suggested retailers would be better served by taking advantage social network data from third party domains. Apparently less than 50 percent of retailers do, and only 8 percent understand its importance.

So they underscore the importance of leveraging social media, but the core principles remain: People, customers, and physical store layouts.

With more than 100 questions, the survey probes the strategy, tactics and execution of retailers in more than 20 countries.

It covers multiple sectors, including apparel, health and personal care, mass-market and hypermarket, electronics, food and grocer, and cash and carry.

To see the report, visit: www.atkearney.com/AERO.

From the Coach’s Corner, more tips:

• Want More Business? Build Trust with Consumers…Here’s How
• Why Your Customers Stay or Leave – Insights from Study
• Your Supply Chain Can Meet the Expected Standards of Customers, If…
• Research – Are You Making the Same Mistake as Big Box Retailers? 

It takes less effort to keep an old customer satisfied than to get a new customer interested.

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

You Can Drive Business Profit with a Mid-Year Operations Audit

Are your profits flat despite a bigger marketing budget? Here’s how you can regroup before Q4 with a mid-year operations audit.

 

June 2, 2013

So, you’ve installed an elite marketing program, but you haven’t met Q1 and Q2 profit projections? Well, there’s one likely suspect – your internal operations.

Find out where the problems are, so you can implement profit solutions. Consider an internal operations audit.

It can spot typical operational challenges such as dysfunctional supply chains; failures in green-business practices; IT security issues; and unnecessary risks that threaten business disruptions. 

Use an internal audit to unearth the problems with 10 strategies:

1. Be respectful of your employees — don’t endanger morale. Many employees get nervous any time a big boss or management consultant suddenly enters their space with a clipboard full of questions.

Treat employees as experts. Be diplomatic. Explain the overall reasons for the audit. First, meet with your leaders and get their feedback then meet everyone individually before considering staff meetings.

2. Encourage your employees to participate in the process. That’s accomplished by active listening with open-ended questions to get information. This isn’t about telling employees what they’re doing right and wrong.

You need to know the realities they face in the operational costs of their daily responsibilities. In addition, they need to know what drives profit to improve cash flow. See who knows about profit drivers and who doesn’t.

The solution: Start creating a partnership with your employees. If employees perceive that a partnership exists, you’ll be closer to achieving the desired results.

3. Make certain you have a distinct, companywide understanding of all your systems. Employees can’t perform well in chaos. Check to see if you’re employing best practices that include solid operations checklists.

4. Examine everything – don’t be complacent. Don’t omit any area. Check every phase of your business. That includes employee morale. High morale among employees propels profits.

5. Take steps to empower your employees. Don’t be afraid of negative news. Welcome it. You can literally power your brand with employees who aren’t afraid to speak.

6. Segue to profitable ideas. Don’t keeping focusing on the problems. Change direction.  Instead, encourage discussions for improvement in the challenges.

Ultimately, the goal is to motivate employees to offer profitable ideas, such as properly managing your inventory costs for positive cash flow. Remember, it’s a matter of principles, not finger pointing at personalities.

7. Double down – follow all salient areas and gauge your progress. You’ll need to know the most stubborn issues in order to save time and increase revenue. Your audit should reveal what’s changed and what hasn’t.

Hint: You can increase your business value with five basic business-process optimization strategies.

8. Continue to consider your employees’ perceptions. Not all employees will be on the same page with you for business growth. You can ease the process by dealing with their biggest concern – what’s in it for them – then, they’re more likely to cooperate enthusiastically.

Trust between management and your workforce helps. Implement leadership strategies for employee respect, and take steps to boost your employees’ morale.

9. Think and act like one of your valued customers. Your audit should consider your customers’ perspectives – what’s working for them, what isn’t and what would solve the issues.

Look for two common problems:

• A supply chain that fails to meet the expected standards of customers.
• A marketing/sales culture that falls short in innovation and responsiveness to your patrons. 

1o. Be pragmatic and balanced. Often, there’s a tendency to belabor the negatives without focusing enough on the positives. Make sure your reports are balanced.

If you’re not balanced, it will become unnecessarily difficult to market your changes to employees.

From the Coach’s Corner, related information:

• 8 Strategies When Sales Drop and Costs Cut into Your Profits
• 13 Management Tips to Solve Employee Absenteeism
• HR Management – 8 Best Practices in Employee Delegation
• 6 Steps to Implement a Cultural Change for Profits 

No one so thoroughly appreciates the value of constructive criticism as the one who is giving it.

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

Basics in Hiring a Consultant to Help You Improve Your Company

When hiring a consultant, here are some pointers to keep in mind.

 

June 1, 2013 

When you can’t solve a business problem, you probably need a consultant. Perhaps you don’t have the necessary experience to solve a problem and need to avoid a costly mistake. Or you’re busy time-wise and you might find it more cost effective to hire an expert.

Reasons to hire a consultant might include:

• Analyzing a problem
• Conducting research
• Giving you expert advice
• Setting up a new IT system, IT security
• Human resources training, coaching
• Financial expertise, pricing products and services
• Business turnaround
• Branding, marketing, public relations or crisis-management
• Special projects

Consultants, of course, come in all shapes and sizes to work on a short-term basis. It can be an advantageous situation because you pay for the guidance and information you need.

Some projects can take longer, such as coordinating and implementing a marketing program, installing a new IT system or maintaining systems.

Take precautions

Unless you expect to hire a long-term consultant, make sure you save time and money by getting an estimate with a completion date. However, it’s advisable that you pay on a project basis, not an hourly rate.

Be careful with some consultants because they might have basic abilities but not enough skills to manage a special project.

If you’re considering consultants who are unknown entities to you, check with your associates for recommendations, but check references. Research their reputations and read their writings to learn their philosophy.

Make sure there were no negative surprises.

The consultant should have a track record in completing projects on schedule, within budget, and with measurable results.

You’ll want five salient benefits: Efficiency, information, innovation, objectivity and productivity.

Finally, if you do hire someone and problems occur, but you think it’s a salvageable relationship, see: How to Get Great Service from Dysfunctional Vendors. The tips are applicable for consultants, too.

From the Coach’s Corner, more tips on hiring tech consultants and providers:

• 7 Tips to Hire Marketers for Traditional and Experiential Expertise
• 6 Tips to Save Time and Money by Hiring the Right Tech Consultant
• Risk Management – Picking the Best Cloud Storage Provider
• Strategies to Create the Best Possible Mobile Apps 
• 8 Basic Tips for Selecting the Right Web Hosting Company

 

“Some consultants are like the bottom half of a double boiler: They get all heated up but don’t know what’s cooking.” 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is also a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

Do You Want to Prevail on Google? Watch the Cheesy Stuff

If you want to win on Google, heed its warning.

 

May 31, 2013 

Sure, every online publisher wants to earn money from advertising these days. Note the emphasis on the word, “earn.” But there are ways to do right and ways to do it wrong.

As a publisher of what is designed to be thought leadership here on The Biz Coach, perhaps you can imagine how I felt on Monday, May 20, 2013 when the following email arrived: 

Hello,

I am Kyle with Clear Web Solutions. My company represents a leading provider of online degrees. They would like to purchase ad space on your site’s page, www.bizcoachinfo.com/archives/8426. 

Ideally, we’d like to mention our client in a sentence on your site, which would link to our client’s site.  We could pay you via PayPal for your time and efforts as soon as an agreement is made.

Please let me know if you are interested so we can discuss the details. Thanks for your time and consideration.

Kyle

Advertising Representative

Clear Web Solutions

www.clearwebsolutions.org 

Not to be self righteous, but I had an immediate reaction of disgust. Someone wants me to mention his client with a link to his site for pay? Really?

On the same day, here was my annoyed response:

Hi Kyle:

If I understand you correctly, you and www.clearwebsolutions.org want to insert a paid-sentence with a link to you as a product advertisement in a Biz Coach article, 10 Key Differences between Leaders and Managers? 

Well, I can see why you inquired – data shows the article is perennially one of the most-requested and trusted business-coaching articles on Google.  But your request is ironic. 

A leader would neither make such a request nor would allow such a sinister-advertising approach.  Not only is your request insulting and immoral, it would result in a violation of Federal Trade Commission blogging rules.  Find another occupation before I report you and your company, and before it’s too late for your career.  

Terry Corbell

Publisher 

The abhorrent inquiry from Clear Web Solutions was certainly not the first of its type to be received here. There have been other insulting requests, which is why I once wrote this article: Is the FTC’s Blogger-Payola Crackdown Working?

Candidly, I had forgotten about them. But I was reminded of them today when I spotted a WebProNews article by Chris Crum entitled, “Google Warns: You Better Adequately Disclose Paid Content.”

It was a reminder to heed Google’s policies on ethics.

“Google’s Matt Cutts has been talking about the subject a lot lately, so if your site offers any advertorial content, you better make sure you’re doing it the right way, under Google’s guidance, or you just might find yourself slapped with a harsh penalty independent of any black and white animal-named algorithms,” writes Mr. Crum.

Amen.

“Earlier this month, Cutts put out a video talking about a bunch of big SEO-related changes Google is working on, and that webmasters could expect to see over the coming months,” adds Mr. Crum. “The video discussed the most recent Penguin update, which we’ve already seen take effect.”

Again quoting Mr. Cutts, Mr. Crum warned about advertorials and native advertising.

“Now, Cutts has a new video talking for five minutes specifically about Google’s policies on advertorials and native advertising,” he explains. “Yes, they’re taking this seriously, so you should too, if you’re at all concerned about your Google rankings.”

Mr. Crum’s article linked to a second video warning that advertorials need to be properly disclosed if you want to avoid Google’s wrath.

There’s more.

“In case you’re still not convinced that Google is cracking down on this stuff, a couple weeks ago, Cutts tweeted that Google had just took action on thousands of linksellers,” Mr Crum warns.

See the original WebProNews article for more details.

From the Coach’s Corner, see these resource links:

• Google insights – 23 key questions about your Web site
• Secrets for Attracting, Keeping Readers on Your Blog
• 12 Tips to Develop the Best Content for a Top-Rated Blog 

“Ethics is knowing the difference between what you have a right to do and what is right to do.”

-Potter Stewart

 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

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